The marketing of loans against young people is increasing. And the young people are lured by it. Read here how.
It is expensive to be young today. We live in a materialistic consumer society where, through social media, we are constantly reminded that we need the right clothes, the latest phone from Samsung or Apple and you have to travel to exotic destinations so you can show the world how fat you are through a post on your facebook wall.
Attractive lifestyle and expensive loans
Often, you may feel pressured to live a certain way and buy certain things if you want to be part of a group. Therefore, it can be easy to be tempted by the many loan offers on the market. Expensive consumption habits of young people mixed with the laissez faire approach of banks and companies to lend them money is an explosive cocktail. A survey conducted by Nordea shows that more than 100,000 young people under 30 have one or more consumer loans, despite the fact that young people in the Nordic countries have an incredibly high availability.
Aggressive marketing of the loans
Every day we are bombarded with advertising for products – advertisements for different products that make life easier. Banks have also become more aggressive in marketing their products. According to an article from the Consumer Council Think, 4 out of 5 young people have been invited to a meeting at their bank when they turn 18. For these meetings, 7 out of 8 experienced negative experiences and felt that their adviser had tried to sell them the bank’s products.
Loans can be hard to overlook
There are many different types of consumer loans. As a consumer, it can often be difficult to choose from these. There are bank loans and overdraft facilities. There are loan sites like DER, Uncle Will and Leasy that lure with “2 minute loans”. You can also find stores like Fona that are tempted by “buy now and pay later”.
Another temptation may be SMS loans, these are incredibly easy to take, but can in the worst case have an incredibly high annual cost, APR, of over 1000 percent. These are in the same category as quick loans. Often, these loans are offered without a careful credit rating, and it can therefore end up young people defaulting and ending up in RKI. Many people do not think about the consequences of taking such a loan. If you are listed in RKI, it may be difficult to get a loan in the future if you later have to buy a home or a car.
Investigate your options
The next time you need a loan, you should always consider whether you can not live without or if you can wait and save your money. There are many good reasons not to borrow money for consumption, as it will only be more expensive for you in the long run. If you really need a loan you should research the market to find out what options you have. You should always be sure that you can afford to repay the money as well as know the costs associated with the loan.